Japan to Help Revitalize Indonesia`s Textile Industry

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  • Industri tekstil. TEMPO/Prima Mulia

    Industri tekstil. TEMPO/Prima Mulia

    TEMPO.CO, Jakarta - Trade Minister Rachmat Gobel said the government and Japanese investors are ready to assist the revitalization of the national textile and sugar industries.

    According to Rachmat, the revitalization is not only in the form of engine updates for the industries, but also in funding. "They will also support the industry by providing cheap financing," he said yesterday.

    Japan's acceptance over Indonesia's request was revealed in Rachmat's work visit to Tokyo on August 4 and 5. The visit was a follow up to a meeting between President Joko Widodo with the Prime Minister of Japan in Tokyo on March 23.

    In addition to discussing the revitalization of the textile and sugar sectors, Rachmat met with Japan's Minister of Economy Trade and Industry Yoichi Miyazawa. The two agreed to finish trade collaborations between the two countries that have been put on hold.

    The ministers also talked about the General Review Indonesia-Japan Economic Partnership Agreement (IJEPA) will be discussed in meetings between both sides' high-level officials. Indonesia also asked for Japan's understanding in resolving 185 of 9,800 tariff lines agreed in the ASEAN-Japan Comprehensive Economic Partnership (AJCEP).

    Trade between Indonesia and Japan's in 2014 reached US$ 40.1 billion, comprising of US$23.1 billion export and US$17 billion import. Trading value in 2015's quarter one reached US$8.9 billion, a 13.57 percent year-on-year decline.

    In the last five years, trade value between the two countries had declined fell by an average of 2.57 percent.